Ship registration
is a relatively new business in The Bahamas, yet the country has grown
from less than one million
gross tons to be the world's fifth largest fleet in little more than
a decade. Since the passing of the Merchant Shipping Act of 1976,
more than 1,500 vessels, representing over 25 million gross tons, have
chosen to register here. Many of the most respected international ship-owning
companies fly the Bahamian flag, including Exxon International, Maersk
Line, Teekay Shipping, and Chevron. Some of the luxury
vessels registered include the ships of Norwegian Cruise Lines and Holland-America
Cruises; others are cargo steamers, frigates, freighters, tankers
and tugboats.

The Bahamas' success as a marine centre is due to a number of factors:

It has long-standing political stability and a highly-respected judicial
system.

It is world renowned for holiday travel, attracting millions of visitors
annually.

Both Nassau and Freeport have fully-equipped, modern harbours, making
it a prime destination for cruise ships.

The Bahamas is a member of the International Maritime Organization
(IMO) and adheres to its principal safety conventions.

The commitment of the Bahamian Government to make the registry the most
responsible available is demonstrated by the fact that any foreign-owned
ship is eligible to be registered in The Bahamas, provided that it is under
twelve years old, is over 1,600 net registered tons (NRT), and engaged
in international trade. Vessels of more than twelve years of age may also
be approved for registration, subject to a special condition survey.

Registration

The requirements
for Bahamian registration are that the vessel be engaged in "foreign going trade," weigh
1,600 tons or more, and be under 12 years of age. Vessels more than 12
years old may
also be approved for
registration, subject to a successful condition survey conducted by one
of seven delegated Classification Societies: ABS, BV, DNV, GL, LRS, NKK,
or RINA. Special consideration is being given to owners of small vessels
through a reduction of tariffs and fees.

The annual tonnage dues are 10% of the NRT, plus $1,500 for ships under
25,000 NRT. For ships over 25,000 NRT, the fee is $0.11 per NRT, plus
$1,500.

Taxation

The operations and income associated with Bahamas Flag vessels are entirely
tax-free, as are capital gains on the sale of vessels. Foreign-owned
vessels of more than 150 GRT are also exempt from Bahamas customs duties
and documentary stamp taxes, whether they call at local ports or not.

Crewing Flexibility

Foreign officers and crew members may serve on Bahamian-registered vessels
provided that the officers hold foreign professional certification acceptable
to The Bahamas Maritime Authority and the crew possess national
certification which conforms to Standards of Training, Certification
and Watching (STCW) regulations.

Survey & Certification

Shipowners can transfer foreign-registered vessels under twelve years
old to the Bahamian flag without a survey. Such vessels would be required
to have a safety inspection within six months of first registration,
and thereafter annually. The safety inspections are conducted by a comprehensive
network of nautical inspectors in over 300 ports throughout the world,
who are authorised by the Bahamas Government for this purpose.

Statutory surveys and the issue of statutory certificates
may be carried out by one of the seven classification societies approved
for the purpose: ABS, BV, DNV, GL, LRS, NKK, and RINA. These arrangements
reflect The Bahamas' long commitment to the maintenance of stringent
standards of maritime safety.

The Bahamas Maritime Authority

Established on July 1, 1995, The Bahamas Maritime
Authority BMA), with its headquarters in London, is a semi-autonomous,
government-owned corporation, specifically designed to be responsive
to the needs of the maritime market place. While the BMA will be self-funding
from revenues generated from within, the government has allocated US$1
million 'seed money' to expedite a number of enhancements to present
operations. Guided by advice from leading shipowners, the BMA is increasing
staff, streamlining registry procedures, and instituting improvements
in support systems.

The BMA's focus is on:

ensuring that standards are maintained on Bahamian
Flag vessels at a level sufficient to ensure the highest reputation
of the Bahamian fleet with port states;

continuing the proven flexibility of manning vessels,
while ensuring that standards of certification and competency remain
commensurate with STCW;

providing technical support to ensure that questions
concerning the technical facets of Flag requirements are answered
in a prompt, courteous and helpful manner;

facilitating ease of registration and subsequent
mortgage transactions for all ships;

ensuring prompt and effective casualty investigations;
and

ensuring that exemplary contingency planning is
available to respond to incidents which may occur on Bahamian Flag
vessels.

For further information on ship registration in The Bahamas, including rates
and regulations, contact: